Business Certification Has Its Advantages

Having your business certified as a minority- or women-owned enterprise can open up a host of opportunities.

Many corporations, as well as federal and state governments, are actively working to procure some portion of their goods and services from minority- and women-owned businesses. Although business certification requires investment, the programs can afford your business training resources, networking opportunities and even RFPs.

Business certifications indicate a special status and help businesses standout in the marketplace. There’s a number of programs for women and minority business owners offered by local and federal governments, as well as third parties. Common programs include:

SBA’s 8(a) Business Development Program for small, disadvantaged businesses. To qualify, businesses must meet several criteria, including but not limited to being majority owned (at least 51 percent) and controlled by individuals who are socially and economically disadvantaged. Federal law defines socially disadvantaged as those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities.

The Historically Underutilized Business Zones (HUBZone) program, a federally-run certification that helps small businesses in urban and rural areas access federal procurement opportunities.

Women’s Business Enterprise National Council’s certification, an educational and networking program that serves as a tool for connecting female entrepreneurs with business opportunities.

National Minority Supplier Development Council’s MBE Certification, a third party business development program for minority-owned businesses that includes trainings and networking opportunities.

Companies can seek multiple business certifications to gain access to more networking opportunities and proposals and to further distinguish themselves. The programs are rigorous, but that’s exactly why they’re so valued by businesses searching for new partners. “Regions takes a special interest in vendor management relationships and supply diversity,” says Marcus Lundy, supplier diversity manager at Regions. “We work with these businesses to help mentor them and to partner on supply chain opportunities. One of the better ways of doing that is through certification because it takes the guesswork out. We rely heavily on these certifications because we know if business owners come through one of these programs, they have been properly vetted, properly trained and know how to add value to our bank and its mission,” he says.

The programs cost money—usually an upfront cost and a yearly renewal, but Lundy explains they can really open doors for a firm. Networking is one the most valuable benefits business certification offers. “I have been one on one with a lot of business owners at these conferences that I probably wouldn’t have met otherwise, because I get 15 to 20 phone calls a day inquiring about how to do business with Regions. But at a conference, I’m in a relaxed environment and I know, because of your involvement in the program, that you are serious and have a track record for doing business. Third party and government certification sets you apart from the rest of the field,” he says.

Of course, certification alone can’t win new business. Nancy Michaels, a business consultant and founder of Grow Your Business Network and NancyMichaels.com, has been through the business certification process several times with Women's Business Enterprise National Council and has conducted numerous trainings on how to leverage certification. Business certification “allows you another avenue of seeking out corporate or government contracts, but it's not a guarantee you'll have an advantage over anyone else who's pitching the company or government entity for business,” she says. “My advice has always been to attempt to secure the business on your merits and then let the organization know that you are, in fact, certified.”

Business certification is an investment. “To just go and get it and then do nothing with it is a disservice to the program and your firm,” says Lundy. “You have to fully commit to certification, and to building the relationships that go along with it. I have seen it with my own eyes: those companies that commit go from ‘good’ to ‘great.’”

This information is general in nature and is not intended to be legal, tax, or financial advice. Although Regions believes this information to be accurate, it cannot ensure that it will remain up to date. Statements or opinions of individuals referenced herein are their own—not Regions'. Consult an appropriate professional concerning your specific situation and irs.gov for current tax rules. Regions, the Regions logo, and the LifeGreen bike are registered trademarks of Regions Bank. The LifeGreen color is a trademark of Regions Bank.

This information is general in nature and is provided for educational purposes only. Information provided and statements made by employees of Regions should not be relied on or interpreted as accounting, financial planning, investment, legal, or tax advice. Regions encourages you to consult a professional for advice applicable to your specific situation. Information provided and statements made by individuals who are not employees of Regions are the views, opinions, or positions of the individual who made the statement and do not necessarily reflect the policies, views, opinions, and positions of Regions. Regions makes no representations as to the accuracy, completeness, timeliness, suitability, or validity of any information presented.

Regions Investment Solutions is a marketing name of Cetera Investment Services. Securities and insurance products are offered through Cetera Investment Services LLC (doing insurance business in CA as CFGIS Insurance Agency), member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with the financial institution where investment services are offered. Investments are: Click here to view Cetera Investment Services Privacy Policy and other Important Information. This site is published for residents of the United States only. Registered Representatives of Cetera Investment Services LLC may only conduct business with residents of the states and/or jurisdictions in which they are properly registered. Not all of the products and services referenced on this site may be available in every state and through every advisor listed. For additional information please contact the advisor(s) listed on the site, visit the Cetera Investment Services LLC site at www.ceterainvestmentservices.com.

Check the background of this investment professional on FINRA’s BrokerCheck.

This communication is provided for educational and general marketing purposes only and should not be construed as a recommendation or suggestion as to the advisability of acquiring, holding or disposing of a particular investment, nor should it be construed as a suggestion or indication that the particular investment or investment course of action described herein is appropriate for any specific retirement investor. In providing this communication, Regions is not undertaking to provide impartial investment advice or to five advice in a fiduciary capacity.

Regions Investment Services, Inc. is a wholly owned subsidiary of Regions Bank, which is a subsidiary of Regions Financial Corporation.

We hope to see you again soon!

And You're Off.

You’re about to leave Regions to use an external site.

Regions provides links to other websites merely and strictly for your convenience. The site that you are entering is operated or controlled by a third party that is unaffiliated with Regions. Regions does not monitor the linked website and has no responsibility whatsoever for or control over the content, services or products provided on the linked website. The privacy policies and security at the linked website may differ from Regions’ privacy and security policies and procedures. You should consult privacy disclosures at the linked website for further information.